RE­GENT de­ter­mi­na­tions in ac­cor­dance with Ar­ti­cles 26 and 27 TAR NC

Commission Regulation (EU) 2017/460 of 16 March 2017 establishes a network code on harmonised transmission tariff structures for gas, known as the TAR NC. In accordance with this network code, the ruling chamber has to determine the main provisions for setting tariffs in the gas transmission system at least every five years. The German transmission system operators (TSOs) are the addressees of the determination.

Ruling Chamber 9 does not approve each individual network tariff (price on the price list). It merely sets the level of the revenue that TSOs are allowed to generate. It also lays down the rules for TSOs according to which they calculate the network tariffs from which they generate their revenue. The basic provisions for these are made in the REGENT determination.

Determination of a reference price methodology (Article 7 TAR NC)
TSOs generate revenue from transmission services by imposing capacity-based transmission tariffs (the transport tariff that network users have to pay for the transmission service). Capacity-based transmission tariffs are calculated based on a reference price. The reference price is the transport tariff that has to be paid at an entry or exit point for a firm, freely allocable capacity product with a duration of one year. The reference price methodology is the methodology used to calculate the reference prices, which could be, for example, distance-dependent pricing or a uniform postage stamp.

Discounts for entry and exit points at storage connection points (Article 9(1) TAR NC)
A discount of at least 50% of the reference price is to be granted at storage connection points to avoid charging double for transmission transport to and from storage facilities and to reflect the general contribution made by storage facilities to system flexibility and security of supply. The discount may also be higher. At storage facilities connected to more than one transmission or distribution system, the discount may only be granted as long as the storage facility is not being used as an alternative to an interconnection point (transport from one market area to an adjacent one).

Discounts for conditional, firm capacity products (Article 4(2) TAR NC)
German TSOs offer conditional capacity products, known as bFZK or DZK, in addition to firm ones (which guarantee unrestricted transport). Conditional capacity products only guarantee transport under a certain condition. If the condition is not met, transport is possible but is subject to a risk of interruption. This should be adequately reflected in the discount.

Benchmarking for individual firm capacity products (Article 6(4a) TAR NC)
It is possible to adjust the reference price at a given entry or exit point so that the resulting values meet the competitive level of reference prices.

Adjustments in the application of the reference price methodology at all entry and exit points (Article 6(4c) TAR NC)
The reference price methodology governs the calculation of the reference price at entry and exit points for a capacity product for firm capacity with a duration of one year. In practice, the revenues that can actually be achieved from transmission services with the reference price sometimes turn out higher or lower, for example because of the possibilities, mentioned above, of granting discounts on the reference price or of benchmarking prices at individual entry and exit points. It may also be possible to generate higher revenues by applying multipliers for non-yearly capacity products (MARGIT). To ensure that TSOs achieve their permitted revenues as exactly as possible, the reference price can be adjusted either by multiplying its value by a constant or by adding to or subtracting from its value a constant.

Determination of non-transmission tariffs (Article 4(4) TAR NC)
As well as transmission services, TSOs can provide non-transmission services such as meter operation and the mandatory offer of an alternative nomination procedure. Separate tariffs have to be determined for non-transmission services. They must be paid by the relevant network users or, if all users benefit from the services equally, by all users.